Condo Buying Advice

The local Maryland moving specialists know that real estate in the economy we live in these days can be a scary investment. People are getting mixed messages regarding whether it’s the right time to buy a home or it’s better to wait longer. Also, in terms of which type of housing, homebuyers don’t know what is better to buy, a condominium unit or a single-family home.

Truth is that condos in 2011 have been dropping in prices so it does offer a chance to own for many people who can’t afford the higher monthly mortgage payments. As professional movers, we always hear people asking “are condominium units a good investment?” In more urban areas, condos offer a lifestyle that’s a little easier than owning a single-family home. The yard and landscaping is taken care of, there are plenty of amenities from pools to indoor gyms to even game rooms and condos are typically close to convenient stores and public transportation. Many baby boomers are downsizing now, trying to sell their homes and getting something smaller and more convenient. Young professionals are also liking the condo life, because it’s generally close to the cultural center and entertainment options such as restaurants, bars and other venues.

But even with this type of situation, the condo sales market has been underperforming for the last three years compared to single-family home sales. Analysts say condos are first to take the hit in a bad real estate market and last to recover. Between August 2008 and August 2011, the average price of a condo has decreased by 14 percent. For single-family homes, the decline has been just 10 percent. This is in part due to the fact that in many metro areas developers overbuilt condominiums as well as because there are stricter rules by the Federal Housing Administration in regards to condo loans insurance. These new rules as that the entire condo project must meet with FHA approval before borrower can get an FHA-insured loan. Only 30 percent of a building’s apartments can have FHA mortgages and half of the building must be sold before it will make a loan. This according to an informational article on MSN.

In some areas, the decision to buy a condo comes down to “are the monthly payments cheaper than paying rent?” Because rents are increasing continuously so there are locations where it’s probably worth it to buy.

For single-family homes, experts are saying that compared to last year sales increased by 18.4%. In the end, buying a condo unit or a home in the suburbs really come down to personal choice, preference and need.

If you’re in the market for either one of these housing units, make sure you call the Maryland local movers for professional moving services. All My Sons of Maryland, a reputable moving company, will quilt pad wrap your furniture and help you with disassembling and reassembling your household items. There’s no heavy lifting for you!